The recent Energy & Commerce Committee markup on the Waxman-Markey “cap-and-trade” bill revealed yet another major weakness: the proposal does not have a feasible way to ensure US companies remain competitive in the global economy. Without a WTO-compatible border adjustment, the proposal will either advantage foreign competitors or spark a trade war that harms everyone.

The Raise Wages, Cut Carbon bill rides to the rescue: unlike “cap-and-trade,” a border adjustment in a revenue-neutral carbon tax would allow the US to apply a very straightforward rebate for exports and tax on imports.

“We need to ensure that US companies are able to compete, otherwise we’re just ‘leaking’ carbon and jobs to countries where they can freely pollute. With the Raise Wages, Cut Carbon bill, we can create fair conditions for trade and growth,” Inglis said.